The company said its large debt was exacerbated by a drop in the price for hard coking coal to $85/mt this year. “We have been upfront with our employees and other stakeholders about the challenges facing Solid Energy,” said Andy Coupe, chairman, Solid Energy. “For some months, we have been consulting with our banks and shareholder to develop a suitable plan.”

Under the plan, which creditors will need to approve next month, most of the company’s debts will be frozen so they don’t accrue more interest. An investment bank will then try to sell off the company’s assets over the next 2.5 years.